Three telecom companies establish ESG investment fund

Tech

Published: 29 Mar. 2022, 16:16

Three telecom companies establish ESG investment fund

SK Telecom President Ryu Young-sang (center), KT President Park Jong-ook (right) and LG U+ CEO Hwang Hyeon-sik (left) pose for photo after signing an agreement to co-establish a 40-billion-won ($32.8 million) ESG fund to invest in start-ups focusing on developing socially-conscious technologies Tuesday. [SK TELECOM, KT, LG U+]

Korea's three telecom companies will establish a joint fund to invest in start-ups with technologies in environmental, social and governance (ESG) management, the companies said in a joint statement Tuesday.

Heads of SK Telecom, KT and LG U+ signed an agreement to co-establish a 40-billion-won ($32.8 million) ESG fund to invest in start-ups focusing on developing socially-conscious technologies, especially in the environment field.

SK Telecom President Ryu Young-sang, KT President Park Jong-ook and LG U+ CEO Hwang Hyeon-sik were present at the signing ceremony.

Each telecom company will invest 10 billion won and the fund manager, KB Investment, will also pitch in 10 billion. KB Investment will review possible candidates and start making investments within the first half of this year.

"This is the first case in which the leading companies of a specific industry are coming together to form a joint fund," the companies said in a press release.

“The reason for putting all the funds into the ESG field is because the need for innovative technologies in the ICT field is increasing at a time where the move toward environmentally-friendly, low-carbon and fair economy accelerates."

In addition to funding, the three companies will also connect the selected start-ups to their respective venture nurturing programs.

The companies will put together an advisory board to make sure that the project does not stop with a one-time investment, they said.

“The CEOs of the three companies will take part in the advisory board to ensure a quick decision-making process,” read the statement. “We look forward to the rapid growth of start-ups with the full support from the three companies and our CEOs.”

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]